One 77-year-old’s search for the truth: 9/11, election fraud, illegal wars, Wall Street criminality, a stolen nuke, the neocon wars, control of the U.S. government by global corporations, the unjustified assault on Social Security, media complicity, and the "Great Recession" about to become the second Great Depression. "The most important truths are hidden from us by the powerful few who strive to steal the American dream by keeping We the People in the dark."

Saturday, January 09, 2016

Janet Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term. And what does she do? Why, based on the present fabricated jobs report she does what was done in the past when the jobs reports were real, i.e., raise interest rates: Bad news now, because that is only done when the economy is really clicking whereas, as PCR puts it, "the United States is now an economy that only creates Third World jobs in lowly paid domestic services." What a joke!

According to Friday’s (January 8) payroll jobs numbers, almost
300,000 new jobs were created in December. Additionally, the previous
two months were revised upward by 50,000 jobs. Apparently, the equity
market did not believe the report, with the averages moving down today.

As I have pointed out almost monthly for what I think could be
approaching two decades, the alleged job growth always takes place in
nontradable domestic services, that is, in areas that do not produce
exports and have no competition from imports. This is the job profile
of a Third World country.

Twelve years ago I predicted at a major Washington, D.C., conference
that was nationally televised that in 20 years the United States would
have a Third World economy if jobs offshoring, which benefits only
corporate executives and shareholders, continued.Jobs offshoring has continued, and judging by the payroll jobs
reports from the US government, the US is already a Third World economy.

The presstitute financial media—and what they are is a bunch of
whores—always reports the alleged jobs increase as if it is a great
thing, testimony to the continuing strength of the American economy, and
so forth. Only a handful of us look at the data and reveal its
meaning. Once again I will strip away the Matrix and show you the
reality.

Allegedly, the US economy has been in recovery since, if memory
serves, June 2009. If so, it is an unusual recovery. Normally, the
rising job opportunities associated with economic recoveries bring
entrants into the labor force, but the US labor force participation rate
has been declining. In December, 2015, there are 1,185,000 fewer
Americans in the labor force than in December 2014; yet, the working age
population is higher today than a year ago.

The reported unemployment rate does not include “discouraged
workers,” that is, workers who unable to find jobs have ceased looking
for work. The reported unemployment rate of 5% only counts
non-discouraged workers who are still expecting to find a job. The
actual unemployment rate, that is, the rate that includes Americans who
have given up hope of finding employment, is 23%. Currently, there are
94,691,000 Americans of working age who are not in the labor force. In
other words, the US Gross Domestic Product (GDP) is deprived of a large
percentage of its labor input.

Now, we will pay attention, unlike the financial presstitute media,
to the age groups who benefited, according to the BLS, from the 292,000
December new jobs. About half of the alleged new jobs—142,000—went to
the 55 years old and over age group. This age group consists primarily
of retirees who have found it necessary to supplement their retirement
income and of those near retirement who are working in order to
compensate for the lack of interest on their savings due to the Federal
Reserve’s zero interest rate policy. These are part-time, lowly paid
jobs without benefits.

Americans of prime working age, 25 years old to 54 year old, only received 16,000 or 5% of the new jobs.

Those aged 46 to 54 lost 165,000 jobs. In other words, middle aged
people are losing their jobs before they can provide for their
retirement.

There are 527,000 more Americans working multiple jobs in December 2015 than in December 2014.

Now, as we have done so often for many years, let’s look at the make
believe jobs that the BLS claims. Almost all of them are in lowly paid
domestic services, such as waitresses, bartenders, couriers and
messengers, employment services, social services and health care
(primarily ambulatory health care services).

The conclusion is that if we believe the payroll jobs report, the
United States is now an economy that only creates Third World jobs in
lowly paid domestic services.

And yet this non-economy on the verge of collapse is said by the idiots in Washington to be a super-power.

2 comments:

Those jobs help cook the numbers. They are also done by the type of people who spend every last cent and keep our economy going. Ponzie schemes are a good thing as long as everyone holds up their end of the bargain. ;-)

About Me

B.S. in Physics, Carnegie-Mellon University, 1960 Ph.D. in Physics, Brown University, 1966. Fellow, American Physical
Society. Fellow, American Association for the Advancement of Science.
Fellow, American Ceramic Society. Member, Geological Society of America, Research Physicist at Naval Research Laboratory (NRL), Washington, DC,
1967-2001. Fulbright-García Robles Fellow at Universidad Nacional
Autónoma de México, 1997. Invited Professor of Research at Universités
de Paris-6 & 7, Lyon-1, et St-Etienne (France) and Tokyo Institute
of Technology, 2000-2004. Adjunct Professor of Materials Science and
Engineering, University of Arizona, 2004-2005. Consultancy: impactGlass
research international, 2005-present.
Winner, one national and two international research awards and honored
by Brown University with a "Distinguished Graduate School Alumnus
Award." Author, 198 papers in peer-reviewed journals and books, Principal Author of 114 of these.